On February 12, Bitcoin reached a key milestone, reaching $50,000 for the first time in almost two years. This achievement, despite past doubts about the dominating cryptocurrency, represents a tremendous comeback.
The Bitcoin rally
Bitcoin’s rise above $50,000 represents a successful rebound from the failures of crypto scandals and a significant 64% collapse in 2022. However, despite this feat, bitcoin remains roughly $19,000 behind its all-time high hit in November 2021.
Nexo’s Antoni Trenchev noted that $50,000 became an important milestone with the debut of spot ETFs last month. Despite early scepticism and a subsequent selloff, an optimistic mood has returned to the crypto market, with inflows outweighing withdrawals.
CoinShares’ head of research, James Butterfill, attributed these trends to China’s loosening monetary policy and increasing asset purchases, particularly in bitcoin and stocks. The robust demand for spot Bitcoin ETFs, coupled with significant net inflows, demonstrates increased trust in the cryptocurrency.
Cryptocurrencies fell on February 13 as part of a larger market sell-off driven by a higher-than-expected Consumer Price Index (CPI). Bitcoin, as an aspirational store of value, is impacted by monetary policy, and the CPI report signals a probable delay in the Federal Reserve’s turn, reducing Bitcoin’s perceived position as an inflation hedge.
Strix Leviathan’s Nico Cordeiro predicts a sustained crypto gain but warns of potential weakness if inflation remains, contradicting the popular perception that Bitcoin is an inflation hedge.
Bitcoin’s Future in Perspective According to analyst Tuur
Furthermore, bitcoin will reach at least $200,000 in the next few years, potentially more than $500,000 by 2026. Demeester focuses on macroeconomic reasons, predicting that bitcoin will increase due to trillions of dollars in global bailouts and stimulus.
Despite opposing viewpoints, Demeester sees $50,000 as a critical stage, predicting retail interest to surge, and saying, “There is no fever like bitcoin fever.” While there is euphoria surrounding bitcoin, some negative voices, such as Crypto trader il Capo, warn of a probable market reverse. Skybridge Capital founder Anthony Scaramucci, on the other hand, remains hopeful, claiming that it is still possible to acquire Bitcoin. Scaramucci cites dropping interest rates, increased demand for spot Bitcoin ETFs, and the impending halving as factors driving Bitcoin’s upward trend.
Bitcoin Pricing Analysis
As of this writing, the bitcoin (BTC) price is $51,751, representing a 20% growth over the previous seven days and contributing to a worldwide cryptocurrency market size of $2.02 trillion. With a circulating quantity of 20 million BTC, bitcoin’s market capitalization has surpassed $1 trillion, hitting $1,015,756,688,898. According to CoinGecko data, the worldwide cryptocurrency market capitalization has increased consecutively, reaching a hefty $2.02 trillion.
On a weekly basis, the Relative Strength Index (RSI) score is 86.9, indicating strong bullish momentum. A weekly close above $50,000 might bolster this trend, sending the price into new resistance levels.
Looking ahead, the approaching Bitcoin halving event serves as a beacon of hope for investors, perhaps propelling more upward movement for Bitcoin. In the past, halving events have had a positive influence on the supply dynamics of cryptocurrencies. However, in the middle of the enthusiasm, crypto traders are advised to be cautious. Dealing with the unpredictable cryptocurrency market necessitates a careful risk management strategy. While the halving event may pique traders’ interest, they must navigate these waters with a clear grasp of the associated dangers, emphasizing the significance of strategic risk management procedures to protect assets in this volatile and unpredictable financial landscape.
Ethereum is targeting $3,000.
Ethereum, closely associated with bitcoin, is showing symptoms of a bullish upsurge as speculative traders boost leveraged bets, as suggested by the on-chain market analytics platform, CryptoQuant. Ethereum’s funding rate has risen to its highest level in over 40 days, coinciding with an increase in bullish holdings ahead of the Bitcoin spot ETF judgment. The link between Bitcoin’s milestone and Ethereum’s prospective upsurge encourages traders. Speculative speculators expect Ethereum’s price to rise further, maybe reaching the $3,000 level. This estimate is supported by an increase in funding rates and a good market attitude. However, there is substantial resistance at $2,750, with 878,100 addresses holding 671,830 ETH at an average price of $2,760. A successful break of this resistance might send Ethereum towards the $3,000 mark.
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